Georgia Gulf’s building products segment posted a second-quarter operating income of $15.4 million, down $1.5 million from a year ago, as net sales fell 8% to $252.4 million, the company announced today. The segment’s operating income included $500,000 of restructuring income from the recovery of previously written down equipment for the period ended June 30.
Overall, net income at the Atlanta-based cholorvinyl and building materials manufacturer fell 7% to $13.6 million despite a 4% increase in sales to $867.7 million. The company said net income includes $6.6 million of pre-tax expense from transaction related costs, restructuring, and other expenses. Operating income for the quarter fell 20% to $28.4 million.
The cholorvinyls unit posted an operating income of $34.5 million, a 10% decrease from last year’s results that included a $1.2 million gain on the sale of assets. The unit reported a 5% growth in sales to $339.9 million.
Georgia Gulf’s aromatics segment more than halved its operating loss, finishing at $2.4 million. Segment sales jumped 18% to $275.5 million.
On July 19, the company announced it will merge with the commodity chemicals division of PPG Industries after the unit separates from its current company and becomes a free standing business. The boards of directors of both companies approved definitive agreements for the merger prior to the announcement.
“Our recently announced merger with PPG’s commodity chemicals business will create a chemicals and building products leader that is very well positioned to benefit from this cost advantage and expanding global demand for our products,” said Paul Carrico, Georgia Gulf’s president and CEO.
